Audit (Amendment) Act 2003 (Vic)

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Audit (Amendment) Act 2003

Act No. 36/2003

TABLE OF PROVISIONS

Section Page

PART 1—PRELIMINARY 1

1. Purposes 1
2. Commencement 2

PART 2—AMENDMENT OF AUDIT ACT 1994 3

3. Definitions 3
4. New section 3A substituted 4

3A. Objectives 4

5. Annual plan 5
6. Annual report 6
7. Concurrent consideration of Auditor-General's annual plan
and budget 6
8. Assistance for Auditor-General 6
9. Delegation 7
10. Further amendment of delegation provisions 8
11. New section 7H inserted 8

7H. State indemnity 8

12. New section 9 substituted and 9A inserted 9

9. Audit opinions on financial statements 9
9A. Audit opinion on annual financial report of the State 10

13. New section 10 substituted 10

10. Audit fees 10

14. New section 13 substituted 11

13. Auditing standards 11

15. Increased penalty for failing to attend Auditor-General etc. 12
16. New sections 15 and 16 substituted 12

15. Performance audits 12
16. Audit reports to Parliament 13

17. New section 16A substituted 15

16A. Reports to Parliament on annual financial report of

the State 15

18. New section 16AB inserted 16

16AB. Transmission of reports to Parliament 16

19. Consequential amendment of section 16B 18

i

Section Page

20. New Part 3B inserted 18
PART 3B—FURTHER FUNCTIONS AND POWERS OF
AUDITOR-GENERAL 18

16C. Audits in relation to financial benefits given by the

State or authorities 18
16D.

Acting as auditor under the Corporations Act 19
16E.

Other auditing services for authorities 20
16F.

Information to public officials during course of audit 20
16G.

Other financial audits 21

21. Audits of Auditor-General 22
22. Consequential repeal of section 20 24
23. Improper use of information 24
24. New section 28 inserted 25

28. Authorities 25

PART 3—FINANCIAL MANAGEMENT ACT 1994 26

25. Tabling requirements for financial reports and statements 26

═══════════════

ENDNOTES 27

ii

Victoria

No. 36 of 2003

Audit (Amendment) Act 2003†

[Assented to 11 June 2003]

The Parliament of Victoria enacts as follows:

PART 1—PRELIMINARY

1. Purposes

The main purposes of this Act are—

(a)

to amend the Audit Act 1994 with respect to the powers of the Auditor-General and indemnities for the Auditor-General and audit staff;

(b)

to amend the Financial Management Act 1994 with respect to the tabling of financial reports.

Audit (Amendment) Act 2003

Act No. 36/2003

s. 2	Part 1—Preliminary

2. Commencement
(1) This Part and sections 5, 9 and 11 come into
operation on the day after the day on which this
Act receives the Royal Assent.
(2) The remaining provisions of this Act come into
operation on 1 July 2003.

_______________
Audit (Amendment) Act 2003

Act No. 36/2003

Part 2—Amendment of Audit Act 1994 s. 3

PART 2—AMENDMENT OF AUDIT ACT 1994

3. Definitions

See:

(1) In section 3 of the Audit Act 1994, insert the Act No.

following definitions— 2/1994.
Reprint No. 3

' "annual financial report" means the report prepared under section 24 of the Financial

as at
1 January
2000

Management Act 1994 for a financial year; and
amending

"business day" means a day other than a Act No.
9/2000.

Saturday, a Sunday or a public holiday LawToday:
appointed under the Public Holidays Act dpc.vic.
1993; gov.au

"control", in relation to an entity or company,

has the same meaning as in the accounting
standard that applies for the purpose of
deciding whether a company has to prepare
consolidated financial statements under the
Corporations Act;

"entity" has the same meaning as in the
accounting standard that applies for the
purpose of deciding whether a company has
to prepare consolidated financial statements
under the Corporations Act;

"estimated financial statements" means
estimated financial statements prepared
under section 23H of the Financial
Management Act 1994;

"performance audit" means—

(a)
in relation to the Auditor-General or the audit conducted under section 19;

(b)

in any other case, an audit conducted under section 15;'.

Audit (Amendment) Act 2003

Act No. 36/2003

s. 4	Part 2—Amendment of Audit Act 1994

(2) In section 3 of the Audit Act 1994, in the

definition of "authority", after paragraph (b)
insert—
"(c) an entity (other than a department or public

body) of which the State or a public body has
control;".

(3) In section 3 of the Audit Act 1994, in the

definition of "independent auditor", for "Part 4"
substitute "section 17".

4. New section 3A substituted
For section 3A of the Audit Act 1994 substitute—
"3A. Objectives

(1) The objectives of this Act are—

(a) to determine whether financial
statements prepared in the Victorian
public sector present fairly the financial
position and financial results of
operations of authorities and the State;
(b) to determine whether—

(i) authorities are achieving their
objectives effectively and doing
so economically and efficiently
and in compliance with all
relevant Acts;
(ii) Victorian public sector operations and activities are being performed effectively, economically and

efficiently and in compliance with
all relevant Acts;

(c)
to determine whether financial benefits non-government bodies are being applied economically, efficiently and

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Part 2—Amendment of Audit Act 1994 s. 5
effectively for the purposes for which
they were given;

(d)
held accountable for his or her
to ensure that the Auditor-General is the Victorian Auditor-General's Office.

(2) It is the Parliament's intention that, in
pursuing these objectives, regard is had as to whether there has been any wastage of public resources or any lack of probity or financial
prudence in the management or application
of public resources.".

5. Annual plan
For section 7A(4) and (5) of the Audit Act 1994 substitute—
"(4) As soon as practicable after the passage of
the annual appropriation Acts for a financial year, the Auditor-General must complete the annual plan for that year, after considering
any comments received from the
Parliamentary Committee.
(5) The Auditor-General must indicate in the

annual plan the nature of any changes
suggested by the Parliamentary Committee
that the Auditor-General has not adopted.

(6) Before the beginning of the financial year to

which an annual plan relates, the Auditor-
General must—

(a)

present the annual plan to the Parliamentary Committee; and

(b)

give the annual plan to the clerk of each House of the Parliament.

Audit (Amendment) Act 2003

Act No. 36/2003

s. 6	Part 2—Amendment of Audit Act 1994
(7) The clerk of each House of the Parliament

must cause the annual plan to be laid before the House on the day on which it is received or on the next sitting day of the House.
(8) An annual plan that is given to the clerks under sub-section (6)(b) is taken to have been published by order, or under the
authority, of the Houses of the Parliament.".

6. Annual report
In section 7B(2) of the Audit Act 1994—

(a)

in paragraph (d), for "such resolutions." substitute "such resolutions; and";
(b) after paragraph (d) insert—
"(e) summarise the quality control policies

and procedures that were in place in the
Victorian Auditor-General's Office for
the financial year; and

(f)
standards that the Auditor-General has
summarise any additional auditing conduct of audits during the financial year.".

7. Concurrent consideration of Auditor-General's
annual plan and budget
In section 7D(2) of the Audit Act 1994, after
"Parliamentary Committee" insert "concurrently
with the annual plan under section 7A".

8. Assistance for Auditor-General
In section 7F of the Audit Act 1994, after "firm" insert "(other than a person who holds an appointment under section 19)".

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Act No. 36/2003

Part 2—Amendment of Audit Act 1994 s. 9

9. Delegation
(1) In section 7G(1) of the Audit Act 1994, for "may

delegate in writing to any person" substitute
"may, by instrument, delegate to a person
employed in the Victorian Auditor-General's
Office or to a registered company auditor".

(2) For section 7G(2) of the Audit Act 1994
substitute—
"(2) The Auditor-General may delegate to a registered company auditor who is not employed in the Victorian Auditor-General's
Office the power to make a report under section 9 on an audit of the financial statements of an authority only if the total expenditure disclosed in those financial statements does not exceed the threshold amount.".

(3) In section 7G(3) of the Audit Act 1994—

(a) for paragraph (a) substitute—

"(a) for financial statements in respect of the

financial years, or any part of the
financial years, commencing on 1 July
2002 and 1 July 2003—$5 000 000;";

(b) in paragraph (b)—
(i) for "$1 000 000" substitute "$5 000 000";
(ii) for "31 March 1999" substitute "31 March 2003".

(4) After section 7G(3) of the Audit Act 1994

insert—
'(4) In this section—
"registered company auditor" has the
same meaning as in the Corporations
Act.'.

Audit (Amendment) Act 2003

Act No. 36/2003

s. 10

Part 2—Amendment of Audit Act 1994

10. Further amendment of delegation provisions

(1) In section 7G of the Audit Act 1994—

(a) for sub-section (1)(a) and (b) substitute— "(a) the power to express an audit opinion
under section 9A; or

(b)

the power to make a report under section 16, 16A or 16B; or
(c) this power of delegation.";

(b)

in sub-section (2), for "make a report under section 9 on an audit of" substitute "express an audit opinion under section 9 on".

(2) After section 7G(2) of the Audit Act 1994

insert—
"(2A) The Auditor-General cannot delegate any

function or power to a person who holds an
appointment under section 19.".

11. New section 7H inserted
After section 7G of the Audit Act 1994 insert—
"7H. State indemnity
(1) This section applies to—
(a) the Auditor-General;
(b) the Deputy Auditor-General;

(c)

a person acting in the office of Auditor- General or Deputy Auditor-General;
(d) an employee referred to in section 7E.
(2) The State must indemnify a person to whom this section applies against any liability that he or she incurs for anything done or omitted

to be done in good faith—
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Part 2—Amendment of Audit Act 1994 s. 12

(a) in the exercise of a power or the performance of a function or duty under this or any other Act; or
(b)
omission was in the exercise of a power
in the reasonable belief that the act or duty under this or any other Act.

(3) The indemnity does not cover a liability of a

person to the extent to which he or she is
entitled to be indemnified against the
liability by a person other than the State,
whether under a contract of insurance or
otherwise.".

12. New section 9 substituted and 9A inserted
For section 9 of the Audit Act 1994 substitute—
"9. Audit opinions on financial statements
(1) After auditing an authority's financial
statements under section 8(1), the Auditor- on the financial statements to the authority.
(2) The audit opinion must be expressed within 4 weeks after the day on which the financial statements were received by the Auditor-

General for auditing.

(3) The Auditor-General must give a copy of

each audit opinion on the financial
statements of an authority to—

(a)

the Minister responsible for the authority; and
(b) the Minister administering this section.

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Act No. 36/2003

s. 13

Part 2—Amendment of Audit Act 1994

9A. Audit opinion on annual financial report of
the State
(1) The Auditor-General must express a written audit opinion on each annual financial report to the Minister who prepared the annual
financial report.
(2) The audit opinion must be expressed a
reasonable time before the annual financial of the Financial Management Act 1994.".
report to which it relates is required to be
laid before, or given to the clerk of, each

13. New section 10 substituted
For section 10 of the Audit Act 1994 substitute—
"10. Audit fees
(1) An authority must pay to the Consolidated
Fund an amount determined by the Auditor- General to defray the reasonable costs and expenses incurred by or on behalf of the Auditor-General in conducting an audit of the financial statements of the authority and expressing an audit opinion on them under section 9.
(2) The Minister who prepared the annual
financial report must pay to the Consolidated Fund an amount determined by the Auditor- General to defray the reasonable costs and
expenses incurred by the Auditor-General in
conducting an audit of the annual financial
report and expressing an audit opinion on it
under section 9A.

(3) The Minister who prepared the estimated

financial statements must pay to the the Auditor-General to defray the reasonable

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Part 2—Amendment of Audit Act 1994 s. 14
costs and expenses incurred by the Auditor- General in reviewing the estimated financial statements and making a report on them
under section 16B.
(4) If an authority or the Minister referred to in

sub-section (2) or (3) disputes the
reasonableness of an amount to be paid by
the authority or Minister under this section,
the dispute is to be referred to arbitration
under the Commercial Arbitration Act
1984.".

14. New section 13 substituted
For section 13 of the Audit Act 1994 substitute—
"13. Auditing standards

(1) The general auditing standards as issued
from time to time by CPA Australia and the Australia must be applied in the performance of functions and exercise of powers in relation to audits under this Act.
(2) A performance audit must be conducted in accordance with the performance auditing standards as issued from time to time by
CPA Australia and the Institute of Chartered
Accountants in Australia.
(3) The Auditor-General may apply additional

auditing standards, not inconsistent with the
standards referred to in sub-section (1) or
(2), to the conduct of audits under this Act.

Note: These additional standards must be summarised

in the Auditor-General's annual report—see
section 7B(2)(f).".

Audit (Amendment) Act 2003

Act No. 36/2003

s. 15

Part 2—Amendment of Audit Act 1994

15. Increased penalty for failing to attend Auditor- General etc.
For the penalty at the foot of section 14(1) of the
Audit Act 1994 substitute—
"Penalty: 50 penalty units, in the case of a natural
person;
250 penalty units, in the case of a body
corporate.".

16. New sections 15 and 16 substituted
For sections 15 and 16 of the Audit Act 1994 substitute—
'15. Performance audits
(1) The Auditor-General may conduct any audit
he or she considers necessary to determine—

(a)
objectives effectively and doing so
whether an authority is achieving its compliance with all relevant Acts; or

(b) whether the operations or activities of the whole or any part of the Victorian public sector (whether or not those
operations or activities are being
performed by an authority or
authorities) are being performed
effectively, economically and
efficiently and in compliance with all
relevant Acts.
(2) Before conducting a performance audit, the Auditor-General, in consultation with the Parliamentary Committee and any relevant authorities, must prepare a specification for the audit that sets out the particular objectives of the audit and any particular issues to be addressed.

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Part 2—Amendment of Audit Act 1994 s. 16

(3) The Auditor-General, in consultation with
the Parliamentary Committee, is to
determine—

(a)

the intervals at which performance audits of a particular authority are to be conducted; and

(b)

the number of performance audits to be conducted in each financial year.
16. Audit reports to Parliament
(1) The Auditor-General may make a report to

the Parliament on any one or more audits
conducted by or on behalf of him or her
under this or any other Act.

(2) In a report under this section, the Auditor-
General—

(a)

may include any information he or she thinks desirable in relation to matters that are the subject of the audit to which the report relates; and

(b)

must set out the reasons for opinions expressed in the report; and

(c)

may include any recommendations arising out of the audit that he or she thinks fit to make.
(3) After preparing a proposed report, the

Auditor-General must—

(a) give a copy of it, or part of it, to—

(i)
proposed report or part relates or
that, in the Auditor-General's
any authority to which the the proposed report or part; and

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Act No. 36/2003

s. 16

Part 2—Amendment of Audit Act 1994

(ii)
part of a proposed report on a
performance audit referred to in
section 15(1)(b)—the department
head of the department for which
in the case of a proposed report or section is responsible; and

(b)

ask the authority or department head (as the case requires), in writing, for submissions or comments before a specified date, being—

(i)
a performance audit—at least
10 business days after the
in the case of a proposed report on the authority or department head; or

(ii)
any other audit—at least
in the case of a proposed report on report or part is given to the authority.

(4) The Auditor-General must include in the

report to the Parliament any submissions or
comments made before the specified date, or
a summary of them in a form agreed between
the Auditor-General and the authority or
department head.

(5) Nothing in this section entitles the Auditor-
General to question the merits of policy objectives of the Government.
(6) In sub-section (5)—
"policy objectives" includes—

(a)

a Government policy direction of a Minister;

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Act No. 36/2003

Part 2—Amendment of Audit Act 1994 s. 17

(b) a policy statement in a Budget Paper;
(c) a statement of objectives in a corporate plan of an authority approved by a Minister;
(d)
any other document evidencing a or a Minister.'.

17. New section 16A substituted
For section 16A of the Audit Act 1994 substitute—
'16A. Reports to Parliament on annual financial
report of the State
(1) The Auditor-General must make a report to

the Parliament on each annual financial
report.

(2) A report under this section may include any

information and recommendations that the
Auditor-General thinks fit—

(a)

for the more effective and efficient management of public resources; and

(b)

for the keeping of proper accounts and records of the transactions relating to public resources.
(3) After preparing a proposed report, the

Auditor-General must—

(a) give a copy of it to the Minister; and

(b)
submissions or comments before a
specified date, being at least
ask the Minister, in writing, for report is given to him or her.

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Act No. 36/2003

s. 18

Part 2—Amendment of Audit Act 1994

(4) The Auditor-General must include in the

report to the Parliament any submissions or
comments made before the specified date, or
a summary of them in a form agreed between
the Auditor-General and the Minister.

(5) In this section, "Minister" means the

Minister who prepared the annual financial report.'.

18. New section 16AB inserted
After section 16A of the Audit Act 1994 insert—
"16AB. Transmission of reports to Parliament
(1) This section applies to a report under
section 16 or 16A.
(2) The Auditor-General must cause the report

to be transmitted to each House of the
Parliament—

(a)
in the case of a report under it has been completed;

(b)
section 16A—on or before
in the case of a report under financial year to which it relates.

(3) The clerk of each House of the Parliament must cause the report to be laid before the House on the day on which it is received or
on the next sitting day of the House.
(4) If the Auditor-General proposes to transmit a report to the Parliament when the Parliament is in recess, the Auditor-General must—

(a)

give one business day's notice of his or her intention to do so to the clerk of each House of the Parliament; and

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Part 2—Amendment of Audit Act 1994 s. 18

(b) give the report to the clerk of each House on the day indicated in the notice; and
(c)
publish the report on the Auditor- practicable after giving it to the clerks.

(5) The clerk of each House must—

(a) notify each member of the House of the receipt of a notice under sub-section (4)(a) on the same day that the clerk receives that notice; and
(b) give a copy of a report to each member of the House as soon as practicable after the report is received under sub- section (4)(b); and
(c) cause the report to be laid before the House on the next sitting day of the House.
(6) A report that is given to the clerks under sub- section (4)(b) is taken to have been published by order, or under the authority, of the

Houses of the Parliament.

(7) The publication of a report by the Auditor-
General under sub-section (4)(c) is absolutely privileged and the provisions of sections 73 and 74 of the Constitution Act 1975 and any other enactment or rule of law relating to the publication of the proceedings of the Parliament apply to and in relation to the publication of the report as if it were a report to which those sections applied and had been published by the Government Printer under the authority of the Parliament.

Audit (Amendment) Act 2003

Act No. 36/2003

s. 19	Part 2—Amendment of Audit Act 1994
(8) For the purposes of this section, the

Parliament is in recess when each House stands adjourned to a date to be fixed by the presiding officer of that House.".

19. Consequential amendment of section 16B
In section 16B of the Audit Act 1994—

(a)

in sub-section (1), omit "prepared under section 23H of the Financial Management Act 1994";

(b)

in sub-section (6), in the definition of "policy objectives", for "16(9)" substitute "16(6)".

20. New Part 3B inserted
After Part 3A of the Audit Act 1994 insert—
'PART 3B—FURTHER FUNCTIONS AND
POWERS OF AUDITOR-GENERAL

16C. Audits in relation to financial benefits given by the State or authorities
(1) The Auditor-General may conduct any audit

he or she considers necessary to determine
whether a financial benefit given by the State
or an authority to a person or body that is not
an authority has been applied economically,
efficiently and effectively for the purposes
for which it was given.

(2) The following sections of this Act apply to

an audit under this section as if references in
those sections to an authority were
references to the person or body that
received the financial benefit—

(a)

section 11 (power to call for persons and documents);
(b) section 12 (access to information);
(c) section 13 (auditing standards);

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Act No. 36/2003

Part 2—Amendment of Audit Act 1994 s. 20
(d) section 14 (offences);
(e) section 16 (audit reports to Parliament);

(f)

section 16F (giving information during the course of an audit);

(g)

section 20A (improper use of information).
(3) In this section—
"financial benefit" means any form of
financial benefit, other than a financial benefit received by a person or body as consideration for goods or services
provided by them under an agreement
entered into on commercial terms.
Example
An example of a financial benefit is a payment made by a department to a body that is not obliged to provide goods or services of approximately equal value directly back to the department in return.

16D. Acting as auditor under the Corporations
Act

(1) The Auditor-General may accept

appointment under the Corporations Act as
the auditor of a State company.
(2) The Auditor-General may charge fair and

reasonable fees in respect of the
appointment.

(3) This section does not limit the Auditor-
General's functions under section 16E.
(4) In this section, "State company" means a company of which the State or an authority has control.
Note: Section 3 defines "control" by reference to the relevant accounting standard.

Audit (Amendment) Act 2003

Act No. 36/2003

s. 20

Part 2—Amendment of Audit Act 1994

16E. Other auditing services for authorities
(1) At the request of an authority, the Auditor-
General may enter into an arrangement with the authority for the provision by the Auditor-General of other auditing services to the authority.
(2) An authority may make a request under sub-

section (1) only with the approval of the
Minister responsible for the authority.

(3) An arrangement may provide for the
payment of fair and reasonable fees to the services.
16F. Information to public officials during
course of audit
(1) At any time during the conduct of an audit,

the Auditor-General may give written
information to a person or body referred to in
sub-section (2) concerning any matter that
the Auditor-General considers warrants
urgent investigation or attention.

(2) The persons or bodies to whom information may be given under this section are—
(a) a Minister;
(b) the Chief Commissioner of Police;
(c) an authority;

(d)

a member, officer or employee of an authority;

(e)

the holder of an office established by or under an Act to which the right to appoint is vested in the Governor in Council or a Minister.

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Part 2—Amendment of Audit Act 1994 s. 20

(3) If the Auditor-General gives information under this section, he or she must—
(a) notify the Premier; and

(b)

include a statement in the audit report that he has given information to a person or body under this section during the conduct of the audit.
16G. Other financial audits
(1) At the request of a person or body that is not an authority, the Auditor-General may enter into an arrangement with that person or body to audit its financial statements.
(2) Before entering into an arrangement, the
Auditor-General must be satisfied that—

(a)

the person or body exists for a public purpose; and

(b)

it is practicable and in the public interest for the Auditor-General to audit the financial statements of the person or body.
(3) An arrangement may provide for the
payment of fair and reasonable fees to the
Auditor-General in respect of the audit.
(4) The following sections of this Act apply to an audit by the Auditor-General pursuant to an arrangement made under this section as if references in those sections to an authority
were references to the person or body with
which the arrangement is made—

(a)

section 8 (audit of financial statements);

(b)

section 9 (audit opinions on financial statements);

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s. 21

Part 2—Amendment of Audit Act 1994

(c)

section 11 (power to call for persons and documents);
(d) section 12 (access to information);
(e) section 13 (auditing standards);
(f) section 14 (offences);
(g) section 16 (audit reports to Parliament);

(h) section 16F (giving information during the course of an audit);
(i) section 20A (improper use of information).'.

21. Audits of Auditor-General
(1) In section 18(3)(a) of the Audit Act 1994—
(a) for "10 days" substitute "10 business days";
(b) for "7 days" substitute "5 business days".

(2) Insert the following heading to section 19 of the
Audit Act 1994—
"Performance audit of Auditor-General
and Victorian Auditor-General's Office".

(3) In section 19 of the Audit Act 1994—

(a)

in sub-section (1), for "Auditor-General is achieving his or her objectives" substitute "Auditor-General and the Victorian Auditor-
General's Office are achieving their
objectives";

(b)

in sub-section (2), for "an auditor" substitute "a suitably qualified person".

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Act No. 36/2003

Part 2—Amendment of Audit Act 1994 s. 21

(4) After section 19(2) of the Audit Act 1994

insert—
"(2A) None of the following can be appointed to conduct an audit under this section—

(a)

a person engaged by the Auditor- General under section 7F;

(b)

a person who holds a delegation from the Auditor-General under section 7G;
(c) the independent auditor.".

(5) In section 19 of the Audit Act 1994—

(a)

in sub-section (3), for "An auditor" substitute "A person";

(b)

in sub-section (4), for "an auditor" substitute "a person";
(c) in sub-section (5)—
(i) for "an auditor" substitute "a person";
(ii) for "the auditor" substitute "the person";

(d) in sub-section (6)—
(i) for "An auditor" substitute "A person";

(ii)
making the report, the auditor"
in paragraph (a), for "28 days before making the report, the person";
(iii) in paragraph (b), for "14 days" substitute "10 business days";

(e)

in sub-sections (7), (8) and (9), for "The auditor" substitute "The person".

Audit (Amendment) Act 2003

Act No. 36/2003

s. 22

Part 2—Amendment of Audit Act 1994

22. Consequential repeal of section 20
Section 20 of the Audit Act 1994 is repealed.

23. Improper use of information
(1) For the penalty at the foot of section 20A of the
Audit Act 1994 substitute—
"Penalty: 50 penalty units, in the case of a natural
person;
250 penalty units, in the case of a body
corporate.".

(2) At the end of section 20A of the Audit Act 1994
insert—

"(2) A person who receives a proposed report, or

part of a proposed report, of the Auditor- information contained in it except—

(a)

in the course of performing the person's official duties; or

(b)

after the information has been made public in a report by the Auditor- General.

Penalty: 50 penalty units, in the case of a
natural person;
250 penalty units, in the case of a
body corporate.
(3) A person to whom information is given

under section 16F must not disclose it
except—

(a)

in the course of performing the person's official duties; or

Audit (Amendment) Act 2003

Act No. 36/2003

Part 2—Amendment of Audit Act 1994 s. 24

(b)

after the information has been made public in a report by the Auditor- General.

Penalty: 50 penalty units, in the case of a
natural person;
250 penalty units, in the case of a
body corporate.".

24. New section 28 inserted
After section 27 of the Audit Act 1994 insert—
'28. Authorities
(1) This section applies to an entity (other than a

department or public body) of which the
State or a public body has control if—

(a) the entity was in existence on 1 July 2003; and
(b) a person or body other than the Auditor-General had been appointed, before 1 July 2003, as the auditor of the entity; and
(c) that appointment was in force on 1 July 2003.
(2) Despite paragraph (c) of the definition of

"authority" in section 3, an entity to which
this section applies is not an authority for the
purposes of this Act until the current term of
the appointment referred to in sub-
section (1)(b) expires.'.

_______________
Audit (Amendment) Act 2003

Act No. 36/2003

s. 25

Part 3—Financial Management Act 1994

PART 3—FINANCIAL MANAGEMENT ACT 1994

25. Tabling requirements for financial reports and statements

See:	(1) For section 27D(2) and (3) of the Financial
Act No.
18/1994.	Management Act 1994 substitute—
Reprint No. 4
as at	"(2) Subject to this section, the Minister must
19 April 2000
and	cause a document to which this section
amending	applies to be laid before—
Act Nos
11/2001,	(a) a House of the Parliament on or before
44/2001 and
50/2001.	the release day for that document; and
LawToday: (b) the other House on the same day or, if
gov.au	that House is not then sitting, on the next sitting day of that House.".

(2) In section 27D(4)(a) of the Financial

Management Act 1994, for "the Legislative
Assembly" substitute "either House of the
Parliament".

═══════════════
Audit (Amendment) Act 2003

Act No. 36/2003

Endnotes

ENDNOTES

†
Minister's second reading speech—
Legislative Assembly: 1 May 2003
Legislative Council: 22 May 2003
The long title for the Bill for this Act was "to amend the Audit Act 1994 with respect to the powers of the Auditor-General and indemnities for the Auditor-General and audit staff, to amend the Financial Management
Act 1994 with respect to the tabling of financial reports and for other purposes."

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Audit (Amendment) Act 2003 (Vic)

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5.	Annual plan	5
6.	Annual report	6
7.	Concurrent consideration of Auditor-General's annual plan
and budget	6
8.	Assistance for Auditor-General	6
9.	Delegation	7
10.	Further amendment of delegation provisions	8
11.	New section 7H inserted	8

9.	Audit opinions on financial statements	9
9A.	Audit opinion on annual financial report of the State	10

15.	Increased penalty for failing to attend Auditor-General etc.	12
16.	New sections 15 and 16 substituted	12

20.	New Part 3B inserted	18
PART 3B—FURTHER FUNCTIONS AND POWERS OF
AUDITOR-GENERAL	18

21.	Audits of Auditor-General	22
22.	Consequential repeal of section 20	24
23.	Improper use of information	24
24.	New section 28 inserted	25

(a)	to amend the Audit Act 1994 with respect to the powers of the Auditor-General and indemnities for the Auditor-General and audit staff;
(b)	to amend the Financial Management Act 1994 with respect to the tabling of financial reports.

(1) In section 3 of the Audit Act 1994, insert the	Act No.
following definitions—	2/1994. Reprint No. 3
' "annual financial report" means the report prepared under section 24 of the Financial	as at 1 January
2000

Saturday, a Sunday or a public holiday	LawToday:
appointed under the Public Holidays Act	dpc.vic.
1993;	gov.au

(a)	present the annual plan to the Parliamentary Committee; and
(b)	give the annual plan to the clerk of each House of the Parliament.

Part 2—Amendment of Audit Act 1994	s. 12
(a)	in the exercise of a power or the performance of a function or duty under this or any other Act; or
(b)	omission was in the exercise of a power

(b)	whether the operations or activities of the whole or any part of the Victorian public sector (whether or not those
operations or activities are being performed by an authority or authorities) are being performed effectively, economically and efficiently and in compliance with all relevant Acts.

Part 2—Amendment of Audit Act 1994	s. 16
(3) The Auditor-General, in consultation with the Parliamentary Committee, is to determine—
(a)	the intervals at which performance audits of a particular authority are to be conducted; and
(b)	the number of performance audits to be conducted in each financial year.

(a)	may include any information he or she thinks desirable in relation to matters that are the subject of the audit to which the report relates; and
(b)	must set out the reasons for opinions expressed in the report; and
(c)	may include any recommendations arising out of the audit that he or she thinks fit to make.

(b)	a policy statement in a Budget Paper;
(c)	a statement of objectives in a corporate plan of an authority approved by a Minister;
(d)

(a)	for the more effective and efficient management of public resources; and
(b)	for the keeping of proper accounts and records of the transactions relating to public resources.

Part 2—Amendment of Audit Act 1994	s. 18
(b)	give the report to the clerk of each House on the day indicated in the notice; and
(c)

(a)	notify each member of the House of the receipt of a notice under sub-section (4)(a) on the same day that the clerk receives that notice; and
(b)	give a copy of a report to each member of the House as soon as practicable after the report is received under sub- section (4)(b); and
(c)	cause the report to be laid before the House on the next sitting day of the House.

(a)	in sub-section (1), omit "prepared under section 23H of the Financial Management Act 1994";
(b)	in sub-section (6), in the definition of "policy objectives", for "16(9)" substitute "16(6)".

(f)	section 16F (giving information during the course of an audit);
(g)	section 20A (improper use of information).

(d)	a member, officer or employee of an authority;
(e)	the holder of an office established by or under an Act to which the right to appoint is vested in the Governor in Council or a Minister.

Part 2—Amendment of Audit Act 1994	s. 20
(3) If the Auditor-General gives information under this section, he or she must—

(a)	the person or body exists for a public purpose; and
(b)	it is practicable and in the public interest for the Auditor-General to audit the financial statements of the person or body.

(a)	section 8 (audit of financial statements);
(b)	section 9 (audit opinions on financial statements);

(a)	in sub-section (1), for "Auditor-General is achieving his or her objectives" substitute "Auditor-General and the Victorian Auditor-
General's Office are achieving their objectives";
(b)	in sub-section (2), for "an auditor" substitute "a suitably qualified person".

(a)	a person engaged by the Auditor- General under section 7F;
(b)	a person who holds a delegation from the Auditor-General under section 7G;

(a)	in sub-section (3), for "An auditor" substitute "A person";
(b)	in sub-section (4), for "an auditor" substitute "a person";

(a)	in the course of performing the person's official duties; or
(b)	after the information has been made public in a report by the Auditor- General.
Penalty:	50 penalty units, in the case of a natural person;
250 penalty units, in the case of a body corporate.

Part 2—Amendment of Audit Act 1994	s. 24
(b)	after the information has been made public in a report by the Auditor- General.
Penalty:	50 penalty units, in the case of a natural person;
250 penalty units, in the case of a body corporate.".

(a)	the entity was in existence on 1 July 2003; and
(b)	a person or body other than the Auditor-General had been appointed, before 1 July 2003, as the auditor of the entity; and
(c)	that appointment was in force on 1 July 2003.